Under controlling precedent, sales and use taxes stop at the state line:
- In 1967, the Supreme Court held that under the due process clause and the dormant commerce clause, Illinois could not require a mail order business based in Missouri to collect use taxes associated with goods that it sold to Illinois residents when its sole connections with Illinois involved the mail and common carriers. See Nat’l Bellas Hess v. Dep’t of Revenue, 386 U.S. 753, 758-60 (1967).
- In 1992, the Supreme Court revisited the area; the Court overturned its prior due process ruling in National Bellas Hess while upholding a bright-line physical presence rule for purposes of the dormant commerce clause.
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